I.R.S. Decision Not to Tax Certain Payments Carries Fiscal Cost

Contributing sentiments towards policy:

56% : That requirement, which was part of the American Rescue Plan of 2021, was projected to raise nearly $1 billion in tax revenue per year over a decade.
51% : Allowing residents to avoid paying taxes on their state rebates means more money in their pockets to spend at a moment when the Federal Reserve is trying to rein in consumer and business spending to cool rising prices.
36% : That amounts to roughly $3 billion to $4 billion in lost tax revenue, according to back-of-the-envelope calculations from the conservative Tax Foundation and the nonpartisan Institute on Taxation and Economic Policy.
20% : The last-minute decision to delay it followed intense lobbying from business groups and political backlash directed at the Biden administration, which was accused of breaking its pledge not to raise taxes on people making less than $400,000.

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